Question

Identify which of the following statements is true:

Options

• Durable goods get transformed in the production and consumption process.

• More sophisticated and heavy capital goods raise the ability of a labourer to produce goods.

• Intermediate goods do not pass through any more stages of production.

• Final goods refers to that good which is purchased for the purpose of further production/resale.

Answer 1

More sophisticated and heavy capital goods raise the ability of a labourer to produce goods.

Explanation:

Heavy machinery is a more sophisticated and heavy capital product that increases a laborer's ability to manufacture things. The time taken by labourers has reduced thanks to this hefty and sophisticated machinery.